International Paper Co

NYSE:IP

Execution: International Paper said second-quarter results showed tangible progress, with stronger-than-expected operating performance despite a very heavy outage quarter and ongoing transformation spending.

North America: Box volumes rose 1.7% year over year on a daily basis, and management expects the business to outpace the industry by about 2% for the full year.

Guidance: Full-year North America adjusted EBITDA was trimmed at the top end to $2.35 billion to $2.45 billion, mainly because of a weaker macro backdrop and longer-lasting Middle East conflict effects.

EMEA: The Europe business came in ahead of expectations, and management kept progressing toward the planned separation of the EMEA packaging business.

Costs and pricing: Management said prior price increases are still flowing through, but inflation in OCC, energy, diesel, freight, and transport is still a major headwind.

Pine Hill: The company expects Pine Hill to be back up by the end of August and said the Q3 EBITDA impact of about $85 million is excluded from the full-year guide, with most of the loss likely to be recovered through insurance.